Table of Contents

2. Table of Contents Access Prior Knowledge New Information Set Goals Activity Conclusion Supply Survey “Law of Supply” Targets Definition Changes in Supply “Law of Supply” Targets Supply Can Change In Two Ways You Draw the Graph Increases Supply Decreases Supply The Effects of Shifting Supply

3. Supply Survey Circle the job that has been assigned to your group.

4. Supply Survey Circle the job that has been assigned to your group. Prepare Ranges

5. Supply Survey Circle the job that has been assigned to your group. $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 Prepare Ranges Poll Classmates

6. Supply Survey Circle the job that has been assigned to your group. I I I I I I I I I I $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 Prepare Ranges Poll Classmates Fill In This Column

7. Supply Survey Circle the job that has been assigned to your group. I I I I I I I I I I 1 2 3 1 1 2 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 Prepare Ranges Poll Classmates Fill In This Column Fill In This Column

8. Supply Survey Circle the job that has been assigned to your group. I I I I I I I I I I 1 2 3 1 1 2 1 3 6 7 8 10 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 Prepare Ranges Poll Classmates Fill In This Column Fill In This Column Graph the Data

9. Supply Survey $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 1 3 6 7 8 10 Draw the Graph

10. Supply Survey $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 1 3 6 7 8 10 What relationship does your graph illustrate between “quantity supplied” and price?”

11. “Law of Supply” Targets Knowledge Understand the relationship between price and quantity supplied. Reasoning Explain why supply curves might shift. Skill Draw shifts in supply curves.

12. Definition If all things are equal, producers will supply more of a product as its price increases, and less of a product as its price decreases.

13. $119.95 Definition If all things are equal, producers will supply more of a product as its priceincreases, and less of a product as its price decreases. 1) Higher prices are an incentive for suppliers.

14. $119.95 $89.95 Definition If all things are equal, producers will supply more of a product as its price increases, and less of a product as its price decreases. 1) Higher prices are an incentive for suppliers. 2) Lower prices for the same item will deter suppliers.

15. Supply Can Change in Two Ways 1) Change in “Quantity Supplied”

16. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve.

17. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve. For example, the price for lemonade might change from $1.00 to $2.00

18. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve. • Notice how the red supply line did not move. Just price changed, so we moved from one “quantity” to another.

19. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve. • Notice how the red supply line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Supply”

20. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve. • Notice how the red supply line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Supply” • This is a shift of the entire supply curve either “left” or “right.”

21. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve. • Notice how the red supply line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Supply” • This is a shift of the entire supply curve either “left” or “right.” For example, lemons might be in season so more lemonade can be produced

22. Supply Can Change in Two Ways 1) Change in “Quantity Supplied” • This is just a change along the supply curve. • Notice how the red supply line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Supply” • This is a shift of the entire supply curve either “left” or “right.” S2 • Notice how the new red supply line/curve shows that more lemonade will be supplied at every price.

23. You Draw the Graph On your notes there is a graph labeled “Increase in Supply.” Draw an increase in supply on that graph. Increase in Supply Draw This Graph

24. You Draw the Graph On your notes there is a graph labeled “Increase in Supply.” Draw an increase in supply on that graph. Increase in Supply S2

25. You Draw the Graph On your notes there is a graph labeled “Increase in Supply.” Draw an increase in supply on that graph. On your notes there is a graph labeled “Decrease in Supply.” Draw a decrease in supply on that graph. Increase in Supply Decrease in Supply S2 Draw This Graph

26. You Draw the Graph On your notes there is a graph labeled “Increase in Supply.” Draw an increase in supply on that graph. On your notes there is a graph labeled “Decrease in Supply.” Draw a decrease in supply on that graph. Increase in Supply Decrease in Supply S2 S2

27. Increases Supply There are six factors that will cause supply to increase.

28. $ Increases Supply There are six factors that will cause supply to increase. 1) Costs of production decrease This means that it costs less to make the item. Materials, wages, and operating costs are some things that might get cheaper.

29. Increases Supply There are six factors that will cause supply to increase. 1) Costs of production decrease 2) Technology improves New computers, new software, or new machinery could all make it easier to supply more products.

30. Increases Supply There are six factors that will cause supply to increase. 1) Costs of production decrease 2) Technology improves 3) Sellers expectations for the future An economy that is expanding is always a good sign for suppliers. New homes are an indicator of good things in the future.

31. Grand Opening Increases Supply There are six factors that will cause supply to increase. 1) Costs of production decrease 2) Technology improves 3) Sellers expect good things in the future 4) More sellers enter the market This means that a new business is entering the market, or a business already in the market is opening new facilities.

32. Increases Supply There are six factors that will cause supply to increase. 1) Costs of production decrease 2) Technology improves 3) Sellers expect good things in the future 4) More sellers enter the market 5) Decrease in Government Regulation

33. Increases Supply There are six factors that will cause supply to increase. 1) Costs of production decrease 2) Technology improves 3) Sellers expect good things in the future 4) More sellers enter the market 5) Decrease in Government Regulation 6) Education of workers in the market improves

34. Decreases Supply There are six factors that will cause supply to decrease.

35. $ Decreases Supply There are six factors that will cause supply to decrease. 1) Costs of production increase This means that it costs more to make the item. Materials, wages, and operating costs are some things that might get more costly.

36. Decreases Supply There are six factors that will cause supply to decrease. 1) Costs of production increase 2) Technology becomes outdated If machinery is not replaced when needed, or if software is not updated, it will be hard to maintain a high level of supply.

37. Decreases Supply There are six factors that will cause supply to decrease. 1) Costs of production increase 2) Technology becomes outdated 3) Sellers expectations for the future An economy that is shrinking is a bad sign for suppliers. Foreclosures on homes are an indicator of bad things in the future.

38. Decreases Supply There are six factors that will cause supply to decrease. 1) Costs of production increase 2) Technology becomes outdated 3) Sellers expect bad things in the future 4) Sellers leave the market This means that a business was forced to close its doors, or a business already in the market closed some facilities.

39. Decreases Supply There are six factors that will cause supply to decrease. 1) Costs of production increase 2) Technology becomes outdated 3) Sellers expect bad things in the future 4) Sellers leave the market 5) Increase in Government Regulation

40. Decreases Supply There are six factors that will cause supply to decrease. 1) Costs of production increase 2) Technology becomes outdated 3) Sellers expect bad things in the future 4) Sellers leave the market 5) Increase in Government Regulation 6) Education of workers in the market declines

41. The Effects of Shifting Supply When the supply curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you.

42. The Effects of Shifting Supply When the supply curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you. Show Answers Draw the Graphs

43. Increase in Supply Decrease in Supply The Effects of Shifting Supply When the supply curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you. Show Answers S2 S2

44. Increase in Supply Decrease in Supply The Effects of Shifting Supply When the supply curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you. Increases () Decreases () Decreases () Increases () S2 S2

45. Changes in Supply DIRECTIONS On the front side, fictional newspaper headlines illustrate the market for ovens. Determine if the quantity supplied changed (which means only the price of ovens has changed), or if the entire supply has changed. If only quantity supplied changed, circle “No Change.” If the entire supply has changed, identify if it was an increase or a decrease, and identify which determinant of supply is responsible. The determinants of supply are listed in the box. On the back side, you will graph these changes. GRAPH CHANGES IN SUPPLY For each of the headlines listed on the front side, draw the appropriate change in supply on the graph. Remember, an Increase means the line moves to the right, a Decrease means the line moves to the left, and No Change means the line stays the same.

46. “Law of Supply” Targets Knowledge Understand the relationship between price and quantity supplied. Reasoning Explain why supply curves might shift. Skill Draw shifts in supply curves.

47. Resources